Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income — Business; Form 1040, Line 12 Workout

Business Income or Loss Information

Independent Contractors

Taxpayers who are independent contractors should receive Form 1099-MISC showing the income they earned from payers. Generally, the amounts for independent contractors will be shown in box 7. The amount from the Form(s) 1099-MISC, along with any other business income payments, are reported on their tax return.

A taxpayer does not have to conduct regular full-time business activities to be self-employed. Having a part-time business in addition to a regular job or business may be self-employment. Ask for any Forms 1099-MISC that document self-employment income. Also ask for documentation of any business income that was not reported on Form W-2 or Form 1099-MISC, for example, check stubs from checks the taxpayer received from a client.

Form 1099-MISC showing box 7.
Form 1099-MISC

Form 1099-MISC